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Contingency Approach or Situational Approach

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1 New Leadership Approach (Transformational, Visionary, Charismatic & Level 5 Leadership)

2 Contingency Approach or Situational Approach
Stages of Leadership Theory & Research Trait Approach dominant until late 1940s - assumes leaders born, not made Style Approach held sway until late 1960s - effects of leadership on those led Contingency Approach or Situational Approach popular to 1980s - situational factors are focus for understanding leadership New Leadership Approach since 1980s, leader defines organizational reality through articulation of a vision We can think of developing notions of leadership in the way it is written and talking about as occurring in different stages of development in a time line. Post-charismatic & Post-transformational emerged late 1990s, distributed leadership, cooperative community-ship & spirituality Source: Parry, K.W. & Bryman, A. (2006) Leadership in organizations, In S.R. Clegg, C. Hardy, T.B. Lawrence & W.R. Nord. Handbook of organizational studies (2nd ed), Sage.

3 Orientation All Leader- focussed still
Examine 'maps and models' of New Leadership Transformational and transactional leadership Charismatic Leadership and the uniqueness of the special leader Dilemma of the ego- driven transformational leader Shift of focus to Level 5 or upper-level leadership (post-charismatic) All Leader- focussed still

4 James McGregor Burns (1978) on Empowerment
Burns is pioneer of new and transformational leadership Transforming nature of a leadership act understood through unexpected and individualistic action of individual Leadership roles exist in web of relationships which offer insights into how values impact on leadership Initiating acts trigger value-laden reactions by individuals acting out their roles Originated from his work on political leaders - got transformational and transactional from this. James MacGregor Burns (1978)[1] first introduced the concept of transforming leadership in his descriptive research on political leaders, but this term is now used in organizational psychology as well. According to Burns, transforming leadership is a process in which "leaders and followers help each other to advance to a higher level of morale and motivation". Burns related to the difficulty in differentiation between management and leadership and claimed that the differences are in characteristics and behaviors. He established two concepts: "transforming leadership" and "transactional leadership". According to Burns, the transforming approach creates significant change in the life of people and organizations. It redesigns perceptions and values, and changes expectations and aspirations of employees. Unlike in the transactional approach, it is not based on a "give and take" relationship, but on the leader's personality, traits and ability to make a change through example, articulation of an energizing vision and challenging goals. Transforming leaders are idealized in the sense that they are a moral exemplar of working towards the benefit of the team, organization and/or community. Burns theorized that transforming and transactional leadership were mutually exclusive styles. Transactional leaders usually do not strive for cultural change in the organization but they work in the existing culture while transformational leaders can try to change organizational culture. (WIKIPEDIA) Burns, J.M. (1978) Leadership, New York: Harper & Row

5 The New Leadership Approach
Transformational leadership (Bass, 1985) Charismatic leadership (Conger, 1989) Visionary leadership (Westley & Mintzberg, 1989) Leader revealed as someone who defines organizational reality through the articulation of a vision which is a reflection of how they define the organization’s mission and the values which support it. Depict leaders as mangers of meaning rather than in terms of an influence process The New Leadership Approach - key characteristics Bass, B.M. (1985) Leadership and performance beyond expectations, New York: Free Press. Conger, J.A. (1989) The charismatic leader: Behind the mystique of exceptional leadership. San Francisco, CA, US: Jossey-Bass Westley, F. & Mintzberg, H. (1989) VISIONARY LEADERSHIP AND STRATEGIC MANAGEMENT. Strategic Management Journal 10, SPECIAL ISSUE, pg. 17

6 Transactional & Transformational Leadership
Leadership theories have emphasized leadership as an exchange process Transactional leadership: leader identifies with what followers want or prefer & helps them achieve level of performance that results in rewards that satisfy them Transformational leadership: leader has ability to inspire and motivate followers to achieve results greater than originally planned and for internal rewards Transactional leaders see their relationships with followers in terms of trade, swaps or bargains. Transformational leaders are charismatic individuals who inspire and motivate others to perform beyond contract. Sometimes commentators associated transformational with management and transformational with leadership.

7 4i’s: Transformational Factors
Idealized influence Act as role models, attract admiration, respect & trust, put needs of others before personal interests, take risks & demonstrate high standards of ethical conduct Inspirational motivation Motivate & inspire others by providing meaning & challenge, arouse team spirit, show enthusiasm & optimism, communicate expectations, demonstrate commitment Intellectual stimulation Question assumptions, reframe problems, approach old issues in new ways, encourage innovation & creativity, avoid public criticism of mistakes Individualized consideration Attend to individual needs for growth & achievement, act as coach or mentor, create new learning opportunities, accept individual differences, avoid close monitoring Bass and Avolio claim that transformational leadership occurs when leaders use these 4 I's Idealized influence: articulate the mission or version of the organization Inspirational motivation: motivate others to put organizational interests before self-interest Intellectual stimulation: stimulate others to see what they are doing from new perspectives Idealized consideration: develop others to higher levels of ability (from Huc and Buc2007: 718) From: Bass & Avolio (1994) Improving organisational effectiveness through transformational leadership. Thousand Oaks, CA: Sage

8 Yukl (1999) Tips for transformational leadership
Develop a challenging and attractive vision, together with the employees. Tie the vision to a strategy for its achievement. Develop the vision, specify and translate it to actions. Express confidence, decisiveness and optimism about the vision and its implementation. Realize the vision through small planned steps and small successes in the path for its full implementation. Yukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285

9 Research findings Bass’s model examined using Multifactor leadership Questionnaire (MLQ) (see Alimo-Metcalfe & Alimo-Metcalfe) Two similar and differentiable leadership styles? Idealisation of leader Inspirational content of leader’s words or vision Together a measure of charismatic leadership style Provides an expanded picture of leadership that includes the exchange of rewards & leader’s attention to growth of followers Places a strong emphasis on followers’ needs, values, and morals - motivated to transcend self-interests for good of team Best leaders are both transformational and transactional When researching transformational and transactional leadership the most frequently used survey is called "the Multifactor Leadership Questionnaire" (MLQ Form 5X). This is a questionnaire that measures each of the components of the full range of leadership, initially starting with Bass' (1985) factors and analysis. The original scales in the questionnaire are based on a initial factor analysis and earlier versions. Earlier research on transformational leadership was limited, because the knowledge in this area was too primitive for finding good examples for the items in the questionnaire. Another weakness in the first version of the MLQ related to the wording of items. Most items in the scale of charismatic leadership described the result of leadership, instead of specific actions of the leader that can be observed and that, in turn, lead to the results. In response to the critics, Bass and Avolio (1990) included in the revised and now subsequent versions many more items that describe leadership actions that are observed directly. They also split out attributions of leadership associated with Idealized Influence and behaviors and actions into two separate scales. The current version of the MLQ Form 5X includes 36 items that are broken down into 9 scales with 4 items measuring each scale. Subsequent validation work by John Antonakis and his colleagues provided strong evidence supporting the validity and reliability of the MLQ5X.[3] Indeed, Antonakis et al. (2003) confirmed the viability of the proposed nine-factor model MLQ model, using two very large samples (Study 1: N=3368; Study 2: N=6525). Although other researchers have still been critical of the MLQ model, since 2003 none has been able to provide dis-confirming evidence of the theorized nine-factor model with such large sample sizes at those published by Antonakis et al. (2003).

10 Mean difference among men and women managers in MLQ scores when rated by subordinates
0.39 0.21 0.19 0.41 Leadership Scale Transformational Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Transactional Outcomes Contingent reward Management –by-exception (active) Management –by-exception (passive) Laissez-faire 0.18 0.08 0.30 0.33 0.25 0.42 Extra effort Effectiveness Satisfaction Male Female Women managers judged more effective & satisfying to work for & more likely to generate extra effort from their people. Women rated higher than men on 4 I’s of transformational leadership – significantly on idealized influence, inspirational & individually considerate Men rated higher in management by exception & laissez-faire leadership Profile emerges of women manager who is seen as a more proactive role model by followers, who is trusted & respected and shows greater concern for her followers Explanations are numerous for these findings, but plausible explanation may lie in tendencies of women to be more nurturing, interested in others and socially sensitive Ability of women to accept their vulnerability while men more likely to react with anger when confronted by their weaknesses Ethical issues – moral reasoning, women focus on care & responsibility & men on rights & justice Bass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management . Vol 33 (4) pp

11 The additive effect of transformational leadership
Idealized influence Individualized consideration Inspirational motivation Intellectual stimulation + + + TRANSACTIONAL LEADERSHIP Management by exception PERFROMANCE BEYOND EXPECTATIONS EXPECTED OUTCOMES Transformational leadership has intuitive appeal Treats leadership as a process that occurs between followers & leaders - leadership emerges from interplay between leaders & followers Some e.g. Bass state that the best way to get high performance is to use an appropriate mix of Transformational and Transactional in an additive manner + Contingent reward Adapted from: Bass, B.M. (1990) Bass & Stogdill's Handbook of leadership: theory, research and managerial applications, 3rd ed., New York: Free Press.

12 Leadership Based On Charismatic Grounds
The term ‘charisma’ will be applied to a certain quality of individual personality by virtue of which s/he is considered extraordinary and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are such as not to be accessible to the ordinary person, but are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a ‘leader’. M. Weber (1968) Economy and Society, 1, p. 247

13 Stages in Charismatic Leadership
(Conger & Kanungo 1988) ""FREEDOM!"" stage one stage two stage three stage four detecting unexploited opportunities & deficiencies in the present situation sensitivity to constituent’s needs formulating an idealized strategic vision communicating the vision articulating the status quo as unacceptable & the vision as the most attractive alternative articulating motivation to lead followers building trust through technical expertise, personal risk- taking, self- sacrifice and unconventional behaviour demonstrating the means to achieve the vision through role modelling, empowerment and unconventional tactics Can play clip if have enough time Talk through model Conger, J.A. and Kanungo, R.N. (1988) Charismatic leadership: the elusive factor in organizational effectiveness. Jossey-Bass

14 Charismatic Leadership: A Relationship Between Leaders & Followers
Characteristics of Charismatic Leaders High degree of self confidence Strong conviction about ideas High energy & enthusiasm Expressiveness & excellent communication skills Active image building & role modelling Characteristics of Followers of Charismatic Leaders High degree of respect & esteem for the leader Loyalty & devotion to the leader Affection for the leader High performance expectations Unquestioning obedience Nahavandi's work shows the importance of the relationship between leaders and followers and identifies the conditions through which this is possible Go though slide…. Elements of Charismatic Situations Availability of dramatic symbols Opportunity to clearly articulate followers’ role in managing the crisis Sense of actual or imminent crisis Perceived need for change Opportunity to articulate ideological goal Nahavandi, A. (2000) The Art & Science of Leadership. Prentice-Hall

15 Conger (1990) The Dark Side of Leadership (ego-led and narcissistic leadership)
Conger warns of dangers associated with high-profile leadership practices Looks at leaders first hailed as exemplary & later as misguided or morally suspect Leader’s distort vision to meet egocentric ambitions Leader develops sense of invulnerability & belief in ‘rightness’ of their vision Failure of charismatic leader due to: Commitment to vision – shift to single-minded obsessiveness Authentic communication – with vision as extension of leader’s personality needs communication is less authentic Style of charismatic leader – exclusion and stereo-typing Conger's work points to negative role models e.g. Adolf Hitler in terms of charismatic leadership and draws our attention to the importance of being able to challenge the leader. SLIDE…. Conger, J.A. (1990) The dark side of leadership. Organizational Dynamics, ISSN , 1990, Volume 19, Issue 2, pp

16 'Heroic' Leaders A Danger?
Theory & research emphasizes the primary importance of a single, heroic leader Charismatic, transformational leadership – effect leader influences followers to make self-sacrifices and exert exceptional effort Influence is uni-directional – flows from leader to followers – success due to efforts of leader Heroic leader expected to be wiser and more courageous than subordinates, and to know everything that is happening Leaders seldom live up to expectations Shared responsibility for leadership functions & empowerment = more effective than heroic leadership (Bradford & Cohen, 1984) Shared responsibility unlikely to occur as long as people expect individual leader to take full responsibility for fate of organization Some issues with the heroic leadership model…. SLIDE…

17 Beyond the heroic new leader
“What catapults a company from merely good to truly great? A five-year research project searched for the answer to that question, and its discoveries ought to change the way we think about leadership” " The most powerfully transformative executives possesses a paradoxical mixture of personal humility and professional will. They are timid and ferocious. Shy and fearless. They are rare - and unstoppable." Collins, 2001 Jim Collins work on Good to Great leaders shows READ SLIDE…. Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76

18 Jim Collins on the Fifth Level Leader "Beyond Charisma"
Collins examined features of exceptional companies From 1400 companies eleven chosen as showing sustained excellence Strongest differentiating factor of these companies termed ‘level five leadership’ Yin Humility & Shyness characteristics Shunning publicity Acting with quiet, calm determination Ambitious for the company, rather than self Accept full responsibility for failure Give credit to others Develop successors Yang Wilfulness & Fearlessness Unwavering resolve regardless of difficulties Unwillingness to settle for anything but the best (Collins 2001) SLIDE…. Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76

19 The Level 5 Hierarchy Level 5 Level 4 Level 3 Level 2 Level 1
LEVEL 5 EXECUTIVE Executive builds great companies through exercise of personal humility and wilfulness EFFECTIVE LEADER Effective leader, promoting commitment to compelling vision & high performance standards COMPETENT MANAGER Competent manager, effectively organizes towards predetermined goals Collins represents Level 5 leadership as a pyramid whereby a leader can move up the levels as they develop (OR NOT!) and ultimately achieve effective performacne at LEVEL 5 SLIDE… CONTRIBUTING TEAM MEMBER Leadership as collaborative team efforts HIGHLY CAPABLE INDIVIDUAL Individual‘s talent, knowledge, & skills are key contribution Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76

20 Summary Charismatic / Transformational leadership contrasted with economic exchange models of transactional leadership Exposes mechanisms through which leaders manage change Bass presents leaders as having range of leadership style – transformational modes an addition to transactional ones Encourages leadership development at all organizational levels Association of new leadership with follower empowerment helps understand dark side of leadership and egocentric behaviours of some leaders Challenging dilemmas examined help broaden understanding of leadership excellence Collins' work suggests transformative leaders need not be heroic/overtly charismatic but possess humility and will. SLIDE…

21 Summary cont. A move away from trait, style and behavioural models
Leadership seen as a socially constructed process Revived interest in leader’s personal characteristics Role of leadership traits: Key traits are not enough to make a leader - they are a precondition for effective leadership Experience, correct choices and exposure to right situations are also key to allow talents to develop

22 "The New Transformational Superleader"
The Theory The new transformational superleader trait must have the right personality, appearance, attributes, voice etc. style must be caring, inspirational and visionary, ethical, risk taker etc. contextual style is consistently with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisation The charismatic business leader continues to hold sway The charismatic story, briefly, holds that great changes are achieved by exceptional people More careful studies beginning to reveal that the story is at best partial Our image of the exceptional leader shown to ignore contributions of people with characteristics of styles & behaviours that are the mirror image of the ‘charismatic’ SLIDE…. Huczynski & Buchanan (2007) Organisational Behaviour. 6th ed. Harlow : Financial Times Prentice Hall

23 Key reading and resources
READING FOR SEMINAR Yukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285 KEY TEXTS Northouse (2012) Chapter 9 Jackson and Parry (2011) Chapter 2 OTHERS Bass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management . Vol 33 (4) pp Conger, J.A. (1990) The Dark Side of Leadership. Organizational Dynamics Vol19(2): p.44 Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76

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